The $60,000 Lesson: Why Skipping Inspections Is a Risk I Can Not Afford

I want to share a personal story that underscores a big lesson I’ve learned in real estate investing. It’s not about numbers, market trends, or fancy strategies—it’s about not skipping the basics.

A few weeks ago, I was pumped about a deal. I had a property under contract in a fantastic neighborhood for $220,000—a price that seemed too good to pass up, 3 units all occupied, 5K repairs. Usually, I follow a strict process: have someone check out the property, evaluate it, and only then lock it down with a contract. But this time, I let excitement cloud my judgment.

“This is such a steal!” I thought. I told the agent, “Let’s put it under contract & I’ll send someone to figure out the details later.” Big mistake.

From day one, communication with the agent was terrible. Red flags started popping up, but I brushed them off, convinced I had scored a winning deal. I planned to inspect the property, but the agent stonewalled me. Every request was met with an excuse or an argument. Still, I was determined to stick to one part of my usual process—getting an inspection for my own records.

On the last day of my due diligence period, I sent an inspector over (and schedule it with the agent). Simple enough, right? This wasn’t about contingencies or renegotiating; it was just for my documentation purposes—a final walkthrough to make sure everything checked out. But the agent shut it down. While he was there.

-“No, you can’t do that,” they said.
I was floored.
-“What do you mean I can’t do that? I’m not trying to renegotiate or back out of the deal. I just need this for my records.”
-“You don’t have the right to inspect the property.”
-"What?!"
At first, I didn’t understand what was happening. Why block a harmless walkthrough? Then, as I looked deeper into the contract, I realized what was going on.

Buried in the contract, the agent had added a clause saying I waived my right to inspect the property. Sneaky, right? When I first saw it (before signing), I thought it just meant I wasn’t asking for an inspection contingency to back out of the deal. But it actually meant I wasn’t allowed to inspect the property. Like, at all.

Let me say this loud and clear: Never sign what you don’t fully understand. Especially when you’re dealing with a $220,000 investment.

Why would an agent go to such lengths to block an inspection? I don't know, but I don't like it. I feel like they had something to hide. On paper, the deal looked incredible. The numbers said me and my investor could have walk away with $60,000 in profit. But if they’re hiding something, the numbers don’t mean much.

So, I did what I had to do: I dropped out of the deal.
How? Luckily, before signing, I had demanded a five-day due diligence period and a walk-through before making any final decision. Since they wouldn’t allow an inspection, I used a simple walk-through to back out, citing, “I’m no longer interested in the property.”

This wasn’t easy. Walking away from a deal that looks good felt like I was throwing profits down the drain.
And you know, the property actually looked good when we went there. But here’s the thing: I believe investing isn’t about chasing numbers. It’s about mitigating risk, protecting your capital, and ensuring every deal you enter aligns with your values and systems.
This one wasn't. For me at least. Not system-wise, and not value-wise.

My Key Takeaways

Read Everything Carefully
Even a single clause can change the game. If you don’t understand something, ask. And if the answer feels off, trust your gut.
Stick to Your Process
There’s a reason we have steps like inspections and due diligence. They’re not just formalities—they’re your safety net.
Don’t Let FOMO Drive You
The fear of missing out can cloud your judgment. Deals come and go, but your integrity and capital are irreplaceable.
If It Feels Shady, It Probably Is
Transparency is everything. If the other side isn’t forthcoming, walk away. A good deal won’t need to hide behind shady tactics.
Dual Representation - You know..
An agent representing both sides might secure you a better deal, but it’s risky. Always aim to have someone solely focused on your interests.

Sometimes, the best investment decision is saying no. Real estate is a long game, and protecting your capital today ensures you’ll have more opportunities tomorrow.

-Dan Shimony